Law: Income Tax Ordinance, 2001

Section: 120, 170,170(4), 236A(1), 114, 122, 364A

PESHAWAR HIGH COURT, PESHAWAR     (Revisional Jurisdiction) (a) Income Tax Ordinance (XLIX of 2001)--- ---Ss. 120, 122 & 170---Deemed Assessment vs. Fast-Tracked Independent Refund Application---No Statutory Requirement to Initiate or Await Amendment of Assessment under S. 122 Before Processing Refund under S. 170.--- A deemed assessment under Section 120 of the Income Tax Ordinance, 2001, resulting automatically upon the filing of a complete return of income under Section 114, is not a substitute for a formal refund order, nor does it automatically entitle a taxpayer to a refund without administrative scrutiny. However, Section 170 provides an independent, fast-tracked, and self-contained statutory mechanism under which a taxpayer is entitled to apply for a refund immediately following the filing of the return/deemed assessment under Section 120. Section 170 mandates the Commissioner to scrutinize the refund application on its own merits, afford a hearing, and issue a formal order under Section 170(4). Because Section 170 is an independent statutory remedy operating directly upon the tax returned and assessed under Section 120, there is no legal requirement whatsoever to initiate or await a formal amendment of assessment under Section 122 before entertaining, processing, and deciding a valid refund application under Section 170. Ref:- Hamid Ashraf (late) through LRs and others v. Commissioner Inland Revenue, Lahore (2020 PTD 1157). (b) Income Tax Ordinance (XLIX of 2001)--- ---S. 236A(1), (2) & (3)---Advance Tax on Sale by Auction or Tender---Scope of \"Lease of Right to Collect Tolls\" under Final Tax Regime (FTR) vs. Normal Tax Regime (NTR)---Lexicographical and Legal Meaning of \"Toll\" / \"Toll Tax\".--- Under Section 236A(1) of the Ordinance, advance tax collected on public auctions or tenders generally falls under the Normal Tax Regime (NTR) pursuant to sub-section (2), allowing full credit and adjustment against the taxpayer\'s final tax liability. Sub-section (3) introduces a specific statutory exception, declaring tax collected specifically on the \"lease of the right to collect…